HERMANUSDOORNS SHAREBLOCK LIMITED AGM June 2006 AGM 2006 1 - PowerPoint PPT Presentation

HERMANUSDOORNS SHAREBLOCK LIMITED AGM June 2006 AGM 2006 1

AGENDA l Welcome and Apologies l Special welcome to all new shareholders l Attendance Register l Notice Convening the Meeting and Quorum Appointment of Referee and assistant to administer and l count votes l Apologies and Proxies l MD’s Report AGM 2006 2

AGENDA … cont l Presentation of Financial Statements l Ordinary Business l Resolutions 1,2,3,4,5,6,7 and 8 l Update on Business Plan l General l Closure l Lunch – directly after the meeting AGM 2006 3

MD’s Report AGM 2006 4

MD’s Report l Year Ended Feb 2006 a good year all-round l Some Highlights l Financial l All Shareholder loans elliminated l Long term levy structure well received and extended for further 5 years l Continuous improvement of the Balance Sheet AGM 2006 5

MD’s Report - Highlights l Operational l Continued improvement of road into the mountain l Upgrade and Electrification of fencing l Electricity supply remains a problem l Eskom related l Reduction of building activity AGM 2006 6

MD’s Report - Highlights l Fauna and Flora l Above average rainfall l Repetition of the Environmental Study l Further electrification of fences l Good breeding season l Possibly attributed to the late rains l Post year end capture instead of culling – preferred method of game management l Removal of Alien plants - Sekelbos AGM 2006 7

Game Count Description Feb 03 Aug 03 Feb 04 Feb 05 Feb 06 Jun 06 Impala 190 125 160 190 220 110 Blesbok 30 30 50 35 40 25 Water Buck 13 13 16 20 24 21 Kudu 86 65 80 100 110 90 Giraffe 3 2 2 5 6 6 Bosbok 22 20 40 45 40 40 Warthog 31 25 25 40 40 40 Blouwildebees 23 24 33 38 60 40 Zebra 10 9 9 10 10 9 Gemsbok 10 9 7 7 6 6 Steenbok 10 11 12 15 16 16 Rooihartebees 23 19 19 23 21 21 Klipspringer 12 14 14 15 20 20 Mountain Reedbuck 10 10 AGM 2006 8

Rainfall History HERMANUSDOORNS _ RAINFALL 1200 300 531 1030 341 338 348 572 382 642 1000 250 Cummulative Monthly 800 200 mm mm 600 150 400 100 200 50 0 0 7 year Annual Average = 523mm 01/02 03/04 05/06 98/99 99/00 00/01 02/03 04/05 5 Year Annual Average = 459mm 3 Year Annual Average = 536mm AGM 2006 9

Rainfall History Annual Rainfall 1200 1000 800 mm 600 400 200 0 1998/9 1999/0 2000/1 2001/2 2002/3 2003/4 2004/5 2005/6 Year AGM 2006 10

The Key Trend Lines AGM 2006 11

Levy Income Le vy I nc om e 8 0 0 7 0 0 6 0 0 Ra nd s (R'0 0 0 ) 5 0 0 4 0 0 3 0 0 2 0 0 1 0 0 0 1 9 9 5 1 9 9 6 1 9 9 7 1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 AGM 2006 12

Levy Structure Le vy Struc ture 9 ,0 0 0 8 ,0 0 0 Ra n ds pe r An nu m 7 ,0 0 0 6 ,0 0 0 5 ,0 0 0 4 ,0 0 0 3 ,0 0 0 2 ,0 0 0 1 ,0 0 0 0 1 9 9 5 1 9 9 6 1 9 9 7 1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 AGM 2006 13

Levy Income - Budgeted Le vy I nc om e 9 0 0 8 0 0 7 0 0 Ra nd s (R'0 0 0 ) 6 0 0 5 0 0 4 0 0 3 0 0 2 0 0 1 0 0 0 1 9 9 5 1 9 9 6 1 9 9 7 1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 AGM 2006 14

Investment Income - Budgeted I nve stm e nt I nc om e 6 0 5 0 Ra nd s (R'0 0 0 ) 4 0 3 0 2 0 1 0 0 2 0 0 5 2 0 0 6 2 0 0 7 AGM 2006 15

Growth in Equity Ca pit a l a nd Re se rve s 7 .0 6 .0 Ra nds (M illions) 5 .0 4 .0 3 .0 2 .0 1 .0 0 .0 1 9 9 5 1 9 9 6 1 9 9 7 1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 AGM 2006 16

Total Debt T ota l De bt 2 ,0 0 0 1 ,8 0 0 1 ,6 0 0 Ra nd s (R'0 0 0 ) 1 ,4 0 0 1 ,2 0 0 1 ,0 0 0 8 0 0 6 0 0 4 0 0 2 0 0 0 1 9 9 5 1 9 9 6 1 9 9 7 1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 AGM 2006 17

Share Price Sha re Pric e 3 5 0 ,0 0 0 3 0 0 ,0 0 0 Ra n ds (R'0 0 0 ) 2 5 0 ,0 0 0 2 0 0 ,0 0 0 1 5 0 ,0 0 0 1 0 0 ,0 0 0 5 0 ,0 0 0 0 1 9 9 5 1 9 9 6 1 9 9 7 1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 AGM 2006 18

MD’s Report … Conclusion l Thank you to l The shareholders l The auditors l The Non Execs l My fellow directors l And I look forward to another great year AGM 2006 19

Ordinary Business AGM 2006 20

Voting Procedure l All done by Poll l One share – one vote l Counting independently done l 2 volunteers l Board l Corresponding totals accepted AGM 2006 21

Ordinary Business l Ordinary Resolution 1 l Resolved as ordinary resolution #1 to approve the minutes of the Annual General Meeting Held on 25 th June 2005 AGM 2006 22

Annual Financial Statements AGM 2006 23

Assets Up by 1% UP By 1% FLAT UP By Down 38% 100% Down Up by 51% 21% UP By 9% Up by 91% AGM 2006 24

Equity and Liabilities Up by UP By 5% 19% Up by 6% FLAT UP By Up by Up by 49% 38% Down 37% 100% UP By 9% AGM 2006 25

Levies Received in Advance 2006 Period R 1 March 2006 to 28 Feb 2007 694,825 1 March 2004to 28 Feb 2009 78,947 1 March 2005 to 28 Feb 2010 106,579 1 March 2006 to 28 Feb 2011 124,912 Capital Levy 297,807 TOTAL 1,306,743 AGM 2006 26

Revenue 2006 2005 Levies +18% 742,973 629,811 Other Income -7% 97,845 105,207 Investment Income +459% 41,802 9,129 Building Income -74% 10,153 38,880 Game -58% 9,596 23,194 General 3,158 - +9% Municipal 32,953 33,120 Shop -79% 183 884 TOTAL 14% 840,818 735,018 AGM 2006 27

Expenses Detail Trend 2006 2005 Directors Salary +10% 125,499 114,086 R 65k could Admin Fees have been +35% 31,421 23,566 capitalised Auditors +20% 23,500 19,630 Salaries and Wages +61% 197,380 121,842 Repairs and Maintenance +47% 80,078 54,382 Vehicle Expenses -20% 123,917 154,458 Insurance +25% 40,912 32,604 Depreciation -11% 71,128 79,780 Electricity and Water +8% 56,140 51,623 Auditor Remuneration +20% 23,500 19,630 Other -14% 59,926 69,347 +3% 744,901 Total +12% 809,901 721,318 AGM 2006 28

Financial Report ACTUAL l Budget – Feb 2006/7 l Total Expenses R 810k R 809,901 As per last l Levy should be l Operational R 8,100 l VAT R 1,134 Presentation l TOTAL R 9,237 year’s l Increase of 14% l No building revenue built in l Relatively cheap in context AGM 2006 29

Financial Report l Budget – Feb 2007/8 l Total Expenses R 900,000 l Recoveries l Investment R 55,000 R 93,000 l Municipal R 38,000 l Real Levy R 807,000 l VAT R 113,000 R 920,000 l TOTAL l Per Share = R 9,485 (+6.6%) l Budget 8% AGM 2006 30

Other issues l Building Revenue l Outsourced to contractor l Defaulted l Farm undertook to complete l Resumed limited building work l Late levies l At 31 March Debtors were R 510k l Lost interest is R 3,500 per month l Three months is more than ONE levy lost AGM 2006 31

Ordinary Business l Ordinary Resolution 2 l Resolved as ordinary resolution #2 to receive and adopt the Company’s annual financial statements for the year ended 28 th February 2006, together with the reports of the directors and auditors. AGM 2006 32

Ordinary Business l Ordinary Resolution 3 l Resolved as ordinary resolution #3 to re-appoint Russell James and Company (Previously Core Chartered Accountants (SA)) as the auditors until the conclusion of the next Annual General Meeting. AGM 2006 33

Ordinary Business l Ordinary Resolution 4 l Resolved as Ordinary resolution 4 to confirm the appointment of Mrs C Konz as executive director. AGM 2006 34

Ordinary Business l Financial stability of the Company remains a core objective M G l To ensure the long term stability of the A company, the board strongly believes that a t s a Capital Reserve be developed. L l Development of a funding mechanism that t a provides for the steady build up of this d e Reserve t n e l Various options are currently being s CAPITAL e investigated. These include r P l Levy structure RESERVE l Preferential Shares, in redeemable and convertible format AGM 2006 35

Ordinary Business l Ordinary Resolution 5 l Resolved as Ordinary Resolution 5 that a special levy amounting to R3 500, inclusive of VAT, per share be levied and that this money be solely used for the purchase of a capital related items that are authorised by resolution in a General Meeting AGM 2006 36

Ordinary Business - Background l Vehicle Usage M l Too many vehicles on the farm G l Consideration and proposal for 2006 AGM as a A resolution: t s a All vehicles used on the farm – L t a other than to travel from the gate d e to the shareholder dwelling – must t n e be registered with the farm and s e r must be legally registered with the P relevant vehicle authorities AGM 2006 37

Ordinary Business l Ordinary Resolution 6 l Resolved as Ordinary Resolution 6 that all vehicles used on the farm – except those used to travel from the gate to the individual units – be registered with the farm and have the necessary COF. AGM 2006 38